redpandaone

I've been offered a IT position in Abu Dhabi but am concerned the remuneration is not enough to live comfortably. I'm married with two primary school aged children.

• Base salary of 33,000 AED/month
• Education allowance of 20,000 AED/year per child
• Medical insurance for the whole family
• Housing loan

Am I right to think the lack of housing allowance and 50% education cover (seems like most schools are 40k per child) will mean my base salary will get eaten up considerably?

Any input from you all there already would be greatly appreciated!

ldnfintech

Hi redpandaone

Based on the information you provided, education allowance is quite low. Your base salary is quite good. However, what do you mean by housing loan? Aren't you getting housing allowance instead by your employer? How's about flights back home for you and your family?

Hope this helps.

iggle

BTW it's abu dhabi law for your employer to provide medical insurance with your visa. If any recruiter tries to say "look also medical insurance included, or we've got you medical insurance as well" tell them to shut up as its Abu Dhabi law. (not Dubai)

Millhouse

it's not enough.

redpandaone

Glad you caught the housing bit. It's not an allowance but no interest loan provided by the employer for housing. They pay for the housing up front on my behalf and I repay the company from my base salary monthly. I've read these types of loans are becoming more common in the UAE.

I didn't mention it in the original post but they are offering yearly flights home and will pay for the relocation as well.

ldnfintech

Hi redpandaone

Okay, essentially you are paying the full housing amount from your pay package of 33k AED pm. This will most likely dent your monthly savings given other recurring expenses. It boils down to what you can save at the end of each month and whether you are comfortable with that.

Annual flights for family is usually standard (I don't get that!) and so is relocation one-off payment.

Good luck with your decision.

redpandaone

Thank you so much Idnfintech.

I didn't mention the tickets + relocation as they're standard (sorry to hear you don't have the flights!)

From the calculations I've done the dent from housing, education and transport will be so large that I'm better off to stay here (I'll be saving a similar amount to what I am now). Sunny, hot weather is an attraction but my goal is to save for the future, and I thought the UAE was THE place to do that. This is my first UAE offer but I won't let it discourage my job hunt there.

The loan worries me as I assume that if the job/project ends abruptly I still have to pay back it back (it can be a big sum, especially if it happens at the beginning of the contract year). Is it the same with housing allowance?

redpandaone

Thanks iggle!

Coincidentally the recruiter has put focus on the medical insurance. Any other tricks I should be aware of?

ldnfintech

Hi redpandaone,

Yes, my personal view here is that your net savings per month should be a 'healthy' factor above your savings from your current role. This factor obviously varies from person to person. For e.g. if you save £1k per month in UK, then your increase in savings in UAE must reflect your satisfaction, within reason of course.

Furthermore, you need to achieve risk-adjusted returns, i.e. you are after all taking some risk moving to Middle east, leaving your comfort zone and therefore your earnings/package should take all that into account.

My goodness if you have a contract with a local landlord, and your work contract gets terminated for some reason, then absolutely, you'll be in a huge limbo. Well spotted and analyzed! However, with housing allowance, it works differently. Now, should the company choose to terminate one's work contract, they take care of the housing allowance - as the contract is between the employer and the landlord. Unless, someone thinks otherwise.

Hope this helps.

Kakawax

another big consideration is a tax free salary means no pension plan

redpandaone

It all comes down to what's written in the contract too. Found this recent article a moment ago where someone had to pay back their allowance:

Abu Dhabi worker must repay company housing loan after being made redundant | The National

redpandaone

Good point. The tax-free aspect sounds appealing but it's not 100% more salary as the recruiters make it out to be. I'd be losing some decent benefits that I get here in the UK as well.

iggle

Yes but you get gratuity fees when you leave your job.

Tell me a pension that gives you 4-6k tax free every year you work for them?

iggle

Read your contract, read it again, then read it again. If there is any clause you don't like fight it or get it removed.

For example, some contracts state that they can take your weekend off your holiday allowance if your holiday is over a weekend. (i think i explained that corrected). My last company wouldn't pay me my allowances when i was on holiday, because i wasn't using a car/mobile to go to work. Make sure your hotel is in your contract, ie i was verbally told that my company would pay for the first month in the hotel. They did pay, then deducted it from my pay.

Check probation period, etc etc. Don't think this is the West, don't trust anyone.

Kakawax

A gratuity for each year you are here, based on your basic salary though not the total package. In terms of saving its a top up no more. I certainly wouldn't figure on gratuities meeting the requirements for a pension plan. And besides.. gratuity is there as an incentive or bonus not to replace an essential cost.